The precious metals of Gold and Silver saw net August gains of +$159.33 (4.8%) to $3447.83, and +$3.02 (8.2%) to $39.70 respectively.
Gold, monthly
Silver, monthly
Summary
Gold: a powerful August gain, settling in the $3447s. Price momentum weakened for a third month, and remains on the very high side. I would note the monthly 10MA at $3065, which was settled above, as the m/t trend remains bullish.
The August candle was solid, making for the highest ever monthly settlement.
I have moderate concern of a washout into the Fall to 3100/3000, if bond yields spike with a stronger dollar.
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Silver: printing $39.97 - the highest since Sept'2011. Momentum ticked upward, and remains on
the moderately high side.
I would note the monthly 10MA at $33.40, which was settled above, as the
m/t trend remains bullish.
The August candle is solid, making for the highest monthly settlement since Sept'2011.
I've concern of a washout into the Fall to the $35/34s within
Sept/Oct', not least if the main market sees a correction of around 10%
to the SPX 5800s.
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Relative
to 2011 - when Gold $1923 and Silver $49s, gold is still massively outperforming
silver. Even the bold will continue to favour gold, which would
better capture a future geo-political 'fear bid'.
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The gold-silver ratio fell to 86.85, but remains historically VERY
high. I'd accept that on a long term basis (5+ years) silver could
be expected to outperform gold.
As ever, ratio charts should be
especially treated with caution.
Price action is far more important than any ratio.
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With Bitcoin (as at August 29th) around $108K, the Gold-Bitcoin ratio has decreased, settling August to around 31.43. It remains a
curious thought to realise that it takes a little more than thirty one 1oz gold coins to
purchase a bitcoin, the latter of which has an intrinsic
value of $0.00
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